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Glitnir Creditors to Review Composition Agreement

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Glitnir Creditors to Review Composition Agreement

Creditors in the now defunct Icelandic bank Glitnir are reviewing a composition agreement to hand the bank to its bondholders.

Photo copyright Icelandic Photo Agency.

The winding-up committee’s proposal is reportedly supported by the bank’s bondholders, though formal approval has not yet been given.

The Government of Iceland said yesterday that it is seeking to pass a bill allowing it to sell its stakes in Glitnir (now Íslandsbanki), Landsbanki and Kaupþing (now Arion Bank), businessweek.com reports.

After the 2008 banking collapse, the Icelandic government transferred domestic accounts from Glitnir to state-created lender Islandsbanki. Creditors received a 95 percent stake in Íslandsbanki. The agreement would mean that creditors would receive payments from the estate.